BLM/Forest Service Right-of-Way Update

The Senate voted on the Interior Appropriations Bill late yesterday. Our
amendment passed, which prevents either BLM or the Forest Service from
enacting new fiber optic federal lands rights-of-way policies. The BLM made
a last ditch effort to defeat this in the Senate, but we had reached key
Senators and staff and they got nowhere.

Action now moves to Conference, which for us means a focus on the House
Conference members. Scott and I will spend the next 2 days meeting with the
key Republicans in the House. We've already recruited the important
Democrats. Interior Approps Subcommittee Chairman Regula remains opposed, at
least publicly, but we think we can get other Members to swing him. We trust
he'll come up with a sensible, face saving compromise on his own, eg,
formally beginning a review process with his Subcommittee having oversight --
at this point, our language literally forbids BLM or Forest Service from even
meeting to discuss the issue.

We continue, though, on several other fronts:

1. We have the New Dems writing OMB on the issue and several Senators and
Congressmen writing BLM and USFS
2. We've increased the pressure on the White House, and are letting them know
through very senior back door channels that in our opinion, BLM/Forest
Service have not gotten the message. Our position is that we'll be satisfied
that they've changed their evil ways when the new assessment on the Mt. Hood
EBS build is retracted.
3. We're preparing both Senate and House authorizing Committees for the
longer-term issue next session. We have no trouble finding champtions eager
to own the issue
4. We're engaging the Western Caucus for same
5. Our adhoc coalition continues to grow in numbers and clout with over 20
companies and associations now actively engaged. Enron chairs this
initiative, with a tangible side benefit being much increased visibility and
stature as a serious communications player.
6. Scott is successfully engaging state and local officials to weigh in from
the end-user perspective

BLM is on the retreat and has asked for a meeting, which we've refused. We
don't think they've given up though, and it's likely an issue of pride at
this point. So until the Approps process concludes we're continuing with the
full court press.

Steve